European Directive Causes Concern

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The vote of the European Shareholders Right Directive, scheduled for June 10, focused the attention of participants at ICGN’s Annual Conference. Among several proposals discussed, the issue on differentiated voting rights — already adopted in countries such as France and Italy – was condemned once again by investors. ICGN attempted to influence the debate through the publication of a document (click here to access) as well as through a speech given by Executive Director, Kerri Warring, highlighting the mistake of breaking the rule one share, one vote as a way to encourage a long-term posture from investors.
Investors’ defense groups present at the conference also called the attention to the lack of opportunity to defend small shareholders, allowing them to exercise their rights in portfolio companies through intra-European borders.
Despite all the effort, the project was expected to be voted this month with several regresses for shareholders and for the capital market.